Consider Two Countries, Alpha and Beta

question 262

Multiple Choice

Consider two countries, Alpha and Beta.In Alpha, real GDP per capita is $6,000.In Beta, real GDP per capita is $9,000.Based on the economic growth model, what would you predict about the growth rates in real GDP per capita across these two countries?

• A)The growth rate of real GDP per capita will be lower in Alpha than it is in Beta.
• B)The growth rate of real GDP per capita will be higher in Alpha than it is in Beta.
• C)The growth rate of real GDP per capita in Alpha and Beta will be the same.
• D)The economic growth model makes no predictions regarding differences in growth rates of real GDP per capita across the two countries.
• E)The growth rate of real GDP per capita will be higher in Beta than it is in Alpha and the gap will widen over time.

---

Definitions:

Economizing Problem

The challenge of satisfying unlimited wants with limited resources, necessitating choices and prioritizations.

Limited Resources

The scarcity of resources (such as time, money, manpower, and natural resources) that is a fundamental economic problem faced by societies.

Unlimited Wants

Unlimited Wants refer to the concept that human desires and aspirations are endless, influential in driving demand in economics.

Scientific Method

A systematic and empirical approach to research, involving the collection of data, formulation and testing of hypotheses, and the development of theories.